Dear Members,

I had a query regarding Opting out of PF.

I) As per the rules, a new employee joining a company can opt out of PF if:

- His basic + DA exceeds 6500/-
- He submits Form 11, which is a declaration by the employee that he has not been a member of PF or has withdrawn his PF accumulations or is a PF Pensioner.

In such a scenario, can an organization refuse the employee from opting out of PF, stating that regardless of their basic salary, all employees are compulsorily covered under PF? Can an organization state that as per Company policy, all employees come under PF?

II) Second scenario

If an employee joins a new company and wants to continue with PF, and the organization refuses, stating that all their employees draw a basic salary beyond 6500/-, and the new employee is also given a salary breakup with basic exceeding 6500/-. As a policy, they do not provide PF to employees drawing more than 6500/- basic. Is this legal? Can an employer avoid PF ACT?

Basically, the question is whether in cases of opting for or out of PF, can the organization refuse as per their set policies and procedures. Kindly guide.

From India, Mumbai
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Can the seniors guide me on this one? I need to know whether an employee willing to opt out of PF by submitting Form 11 can be refused, stating that as per company policy, the option is not given to employees, and they have to continue with PF.
From India, Mumbai
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I would like to know what are elements that are covered under Travelling Rules / Expenses to be paid to employees on tour for a longer period.
From India, Hyderabad
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The following items need to be considered for framing a travel policy (for travel outside headquarters).

1) The employee shall inform the reporting authority about his travel schedule.

2) There shall be an appropriate remark to that effect in the relevant register, i.e., whether attendance register or travel register, etc.

3) The policy can make a provision for sanctioning advance to the employee to enable him to book tickets for the onward journey and inward journey at the request of the employee.

4) The employee shall produce tickets within a stipulated time from the date of granting advance as evidence of having booked the tickets.

5) The policy shall indicate the mode of travel and the class by which an employee is eligible to travel, which shall be commensurate with the seniority of the position in the company.

6) The policy shall also indicate the lodging fares admissible to the employees. Such fares shall be dependent upon the grade and status of the city like metros, Class -1 cities, etc.

7) The policy shall also indicate the boarding fares admissible to the employees. Such fares shall be dependent upon the grade and status of the city like metros, Class -1 cities, etc.

8) The policy shall also determine the daily conveyance charges admissible for conveyance within the city of his halt. It shall be dependent upon the grade and status of the city like metros, Class -1 cities, etc.

9) The policy shall prescribe the mode of conveyance and conveyance charges admissible to the employee for travel from his home/office to the railway station/airport at the time of departure for the onward journey and from the railway station/airport to home/office at the time of arrival.

B. Saikumar

Mumbai

From India, Mumbai
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Hi,

Scenario 1: If he was a member of PF before (organization), then he cannot be excluded from PF. If he was not a member of PF before, then he can exclude himself. The employer cannot insist on it.

Scenario 2: If he was a member of PF before, then the employer cannot exclude him. If he was not a member before, then only with the consent of the employer, he can contribute to PF.

Hope this is clarified.


From India, Hyderabad
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From India, Chennai
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